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CDBG and HOME Programs

The City of Grover Beach is a non-entitlement community, eligible to competitively apply for U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds administered by the State of California. The grants fund programs and projects benefiting very-low, low- and moderate-income persons/households of our community. 

Community Development Block Grant (CDBG)
**If your organization is interested in applying for 2017 CDBG funding, please submit a narrative describing the purpose and amount of funding requested. A public hearing is scheduled for April 17, 2017. For additional information, please contact Janet Reese, Planner II at (805) 473-4520.**

CDBG program funds may be used for the following types of projects:

•     Public Improvements - water and sewer facilities, flood and drainage facilities, street 
      improvements (curb, gutter and sidewalk), and utilities. Street repair is not an eligible project.

•     Public Facility - acquisition, rehabilitation or new construction of buildings used for public purposes
      such as training, health services, education, recreation, nutrition, shelter, day care, temporary
      housing and fire protection.

•     Public Service - child care, health care, recreation programs, fair housing counseling, drug and
      alcohol abuse counseling and testing, homeless services, senior services, and nutrition services
      benefitting low and moderate income persons.

•     Planning and Technical Assistance - studies, analysis, data gathering, preparation of plans and
      identification of action that will implement plans. Grant writing is not an eligible use.

•     Housing:

    • Housing Rehabilitation (HR) or Homeownership Assistance (HA) Programs for sites
      with four or less units.
    • Housing Rehabilitation and or Acquisition for Multi-family Sites - Five or More Units. 

•     Business Assistance & Microenterprise Assistance. Examples of Business Assistance include
      financing of working capital, furniture, equipment, and property repairs/improvements.
      Examples of Microenterprise include business training, financing of working capital, furniture,
      equipment, and property repairs/improvements.

In January 2013, the State Department of Housing and Community Development (HCD) released a Notice of Funding Availability for the CDBG Program. In March 2013, the City Council authorized the submittal of an application. In September 2013, the City was notified that the CDBG application was funded as follows:

Activity Title

Description 

Amount

Water/Sewer Improvements Water line improvements at various locations throughout the City

$1,291,990

Activity Delivery - Water/Sewer Improvements   $103,359
Acquisition & Rehabilitation Acquisition of vacant land for a multi-family development for low-income households $172,266
Activity Delivery - Acquisition & Rehabilitation   $13,781
Planning Only Housing Element Update and Economic Development Strategy $93,023
General Program Administration   $125,581
Total  

$1,800,000


In August 2016, HCD approved the reallocation of the Acquisition & Rehabilitation funds for the following:


Activity Title

Description

Amount
Child Care Services
Scholarships for low income children to
attend camps and classes offered at the
Exploration Station


$6,047
Security Deposits
Payment of a security deposit in order for a
low- or moderate-income household to rent a
housing unit


$60,000
Subsistence Payments
Payment of rent, mortgage, and utilities for
up to three months due to a financial
hardship to prevent homelessness


$120,000

In order to be eligible for the programs above, the applicants' household income must fall below 80% of the
County median income as shown on the table at the bottom of this page.

To apply for the Security Deposits program, contact SLO Housing Connection at (805) 440-6760.

To apply for the Subsistence Payments program, contact the Five Cities Homeless Coalition at (805) 574-1638 or
SLO Housing Connection at (805) 440-6760.

Home Investment Partnerships Program (HOME)
HOME program funds may be used for the following programs and projects:

•     First Time Homebuyer Program – funds to provide loans to homebuyers for acquisition and/or
      acquisition of a dwelling with rehabilitation.

•     First Time Homebuyer Project – the development of homes to be sold to first time
      home buyers.  Construction financing of new construction or acquisition/rehabilitation/conversion
      projects, with 100 percent of the HOME investment rolling over to permanent financing and
      being used to provide mortgage assistance to first-time homebuyers or home buyer
      mortgage assistance only in a project that is being constructed or acquired and
      rehabilitated with other funds.

•     Owner Occupied Rehabilitation Program – funds to assist owners whose primary residence
      is in need of repairs, improvements or reconstruction necessary to meet federal, state, or
      local building codes and correct health and safety deficiencies.

•     Rental Rehabilitation – funds provided to rehabilitate a specific multi-family rental project.

•     Rental New Construction Project – funds provided to develop a specific multi-family project
      on a specific site by a specific developer.

•     Tenant-Based Rental Assistance Program – funds to provide rent subsidies and/or security
      deposits to eligible households.

In May 2013, the State Department of Housing and Community Development (HCD) released a Notice of Funding Availability for the HOME Investment Partnerships Program. In June 2013, the City Council authorized the submittal of an application. In January 2014, the City was notified that the HOME application was funded as follows:

 Activity Title

Award

 First Time Home Buyer Program

 $292,500

 Owner Occupied Rehabilitation Program  $390,000
 State Recipient Administration  $17,500
 Total  $700,000

In order to be eligible for either the first time homebuyer or owner occupied rehabilitation programs, the applicants' household income must fall below 80% of the County median income as follows:

Household Size

1

2

3

4

5

6

7

8

Income Limit
as of 6/6/16
 $42,800  $48,900  $55,000  $61,100  $66,000  $70,900  $75,800  $80,700

In addition, the property to be purchased or rehabilitated cannot exceed $404,000 in value after rehabilitation.

For additional information on these programs, please contact Janet Reese, Planner II at (805) 473-4520.

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